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Dumping is defined as the act of a manufacturer in one country exporting a product to another country at a price which is either below the price it charges in its home market or below cost.

Option NV accounts for 100% of the EU's production of such modems, according to the Wall Street Journal.

The Belgian firm said it made the complaint because of the severe injury caused by the sharp increase of dumped imports into the European market.

The EU's investigation will consider whether the modems from China have been dumped and whether they enjoy safeguard measures.

But China has condemned the investigation as protectionist.

China's Ministry of Commerce said the investigation interferes with normal trade and will hinder the EU's own economic recovery. The Ministry also said the investigation harms the interests of China and the development of science and technology.

China said it will monitor the investigation in line with World Trade Organization rules and reserves the right to take further action.

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